Subject: Mutual Fund Prospectuses
Author: at Internet
Date: 5/17/97 8:19 AM
I disagree with the idea that profiles can take the place of prospectuses.
Indeed, I would like to see the SEC require that funds send MORE information
to prospective buyers, including the following:
- A better written prospectus. Vanguard's new prospectuses are written
clearly. Although some big firms have prospectuses that are legalistic and
boring, some funds actually manage to say something about their philosophy.
- The most recent annual or semi-annual report. Most propsectuses are so
broadly written that a propective investor can't really tell what management
is doing in terms of holdings, etc. without the annual report.
Currently most of my funds report holding by sector and this is very
important. However, the SEC should require these to include information on
the size of companies and any other information that would help assess risk.
- CURRENT Information on results - month by month - over the last year.
Often proprospectuses are so old as to be practically useless.
- CURRENT information on fund holdings for the month, a very simple two
pager.
- A short biography on the fund manager(s).
Thank you for your consideration.